Coronavirus is already disrupting commercial real estate activity

Across the country, the coronavirus outbreak is beginning to affect real estate decision-making with the greatest impact to commercial property markets likely to be in development, finance, hotel, retail and industrial sectors. We wonder, is this the Black Swan event that finally halts the nearly 11-year economic expansion in the U.S., and sends the commercial property market into a tailspin akin to what is currently happening with the global stock markets? We sincerely hope not. However, the wheels seem to be put in place to potentially do so. Events around the world, U.S. and Miami are being cancelled, daily. The biggest property event in Europe, MIPIM – in Cannes, France, was postponed to early June (it was scheduled for mid-March) and may be postponed again or cancelled. ICSC ReCon scheduled for mid-May is likely to be cancelled. Organizers for South by Southwest in Austin cancelled their gathering after Facebook and other tech firms announced they would not be sending their people to Texas. In Miami, Calle Ocho – a huge street party celebrating Cuban and Hispanic culture on S.W 8th Street in Little Havana was cancelled, as well as the Ultra Music Festival that was scheduled for Bayfront Park March 20-22.